Eight Reasons not to sign that Pipeline Easement Agreement

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Landowners are refusing to sign right-of-way agreements with Constitution Pipeline, instead opting to force the pipeline company to go through eminent domain proceedings if the project is approved. This Public Radio report from early May tells the story.

Asserting its jurisdiction over New York’s natural resources, the state Department of Environmental Conservation told federal regulators in a new filing that running the Constitution Pipeline across streams can only occur in a narrow time window because of potential impacts to fish populations.

The "Constitution" Pipeline company wants to negotiate easements with landowners. When you find out how little they offer, you might be disappointed.

At a meeting on February 21, 2013, in Deposit NY the pipeline company told landowners: We will make a one time payment based on the "fair market value" of the land within the easement.

Here’s how they calculate that "fair market value" of land within an easement...

Multiply the length of the easement, by the width of the easement (50 ft.), to get the square footage.
In the diagram above this would be 600 ft. x 50 ft. = 30,000 square ft.
2. Calculate what portion (percentage) of an acre the easement covers.
In this diagram it would be 30,000 square ft. ÷ 43,560 square ft. (the size of 1 acre) = 69% of an acre.
3. Multiply the price per acre that land is selling for in your area, by that percentage.
In this diagram the price per acre could be $5000. $5000 x 69% = $3,443.53
Therefore the "fair market value" of the easement in the diagram above would be $3,443.53

Other examples of easement values:

Length

Width

Square footage

Price/Acre

Fair Market Value

500

50

25,000

$2000

$1,147.84

1000

50

50,000

$2000

$2,295.68

500

50

25,000

$3000

$1,721.76

1000

50

50,000

$3000

$3,443.53

500

50

25,000

$5000

$2,869.61

1000

50

50,000

$5000

$5,739.21

There may be additional terms:

• In addition to the fair market value, the company may try to "sweeten the deal" by oering you more money for granting them an easement before they le an application.

• They may also oer another payment for trees cut, crops lost, and use of a construction easement. Here are some facts to consider:

• If you grant an easement before the company les an application to FERC, or before FERC certies the application, the easement can be sold to a third party.

• An easement becomes part of the title to your property, and is very dicult to remove.

• The company may acquire easements along the "alternate" routes, and later sell them to third parties, or use them for gathering or distribution pipelines.

Before you consider negotiating, ask yourself:

• How much is your land worth now?

• How much would your land be devalued with a 30-inch high-pressure gas pipeline buried on it?

• Would the monetary compensation for this easement be equal to the loss in your property’s value?

• Would your homeowner’s or liability insurance policies be aected if your property had a pipeline?

• If you have a mortgage, would the addition of a pipeline on your property put the mortgage at risk?

• In the future, how dicult would it be to sell your land if this pipeline was built?

If you don’t want a pipeline on your property, join with other landowners who are opposing it. Together we have a chance to win.

About

Williams and Cabot, are proposing to build the Constitution pipeline through our lawns, fields, forests, wetlands and streams. People from along the proposed route – all 120 miles from Pennsylvania to Schoharie County – have formed a coalition to try to stop them. We invite you to join us